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AMBU

Ambuja CementsNSEI:AMBUJACEM Stock Report

Market Cap

₹754.9b

7D

-2.3%

1Y

48.7%

Updated

26 Oct, 2021

Data

Company Financials +
AMBUJACEM fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends4/6

AMBUJACEM Overview

Ambuja Cements Limited, together with its subsidiaries, manufactures and markets cement and cement related products to individual homebuilders, masons and contractors, and architects and engineers in India.

Ambuja Cements Competitors

UltraTech Cement

NSEI:ULTRACEMCO

₹2.1t

ACC

NSEI:ACC

₹417.6b

Dalmia Bharat

NSEI:DALBHARAT

₹360.6b

Ramco Cements

NSEI:RAMCOCEM

₹223.7b

Price History & Performance

Summary of all time highs, changes and price drops for Ambuja Cements
Historical stock prices
Current Share Price₹380.35
52 Week High₹225.95
52 Week Low₹442.50
Beta0.49
1 Month Change-7.39%
3 Month Change-7.10%
1 Year Change48.66%
3 Year Change97.64%
5 Year Change55.56%
Change since IPO853.10%

Recent News & Updates

Oct 23
Do Ambuja Cements's (NSE:AMBUJACEM) Earnings Warrant Your Attention?

Do Ambuja Cements's (NSE:AMBUJACEM) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Sep 02
Ambuja Cements (NSE:AMBUJACEM) Is Doing The Right Things To Multiply Its Share Price

Ambuja Cements (NSE:AMBUJACEM) Is Doing The Right Things To Multiply Its Share Price

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Firstly...

Aug 20
Ambuja Cements (NSE:AMBUJACEM) Could Easily Take On More Debt

Ambuja Cements (NSE:AMBUJACEM) Could Easily Take On More Debt

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Aug 07
Estimating The Intrinsic Value Of Ambuja Cements Limited (NSE:AMBUJACEM)

Estimating The Intrinsic Value Of Ambuja Cements Limited (NSE:AMBUJACEM)

How far off is Ambuja Cements Limited ( NSE:AMBUJACEM ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

AMBUJACEMIN Basic MaterialsIN Market
7D-2.3%-5.0%-4.6%
1Y48.7%63.2%61.7%

Return vs Industry: AMBUJACEM underperformed the Indian Basic Materials industry which returned 63.2% over the past year.

Return vs Market: AMBUJACEM underperformed the Indian Market which returned 61.7% over the past year.

Price Volatility

Is AMBUJACEM's price volatile compared to industry and market?
AMBUJACEM volatility
AMBUJACEM Beta0.49
Industry Beta0.66
Market Beta1

Stable Share Price: AMBUJACEM is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: AMBUJACEM's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19815,046Neeraj Akhouryhttps://www.ambujacement.com

Ambuja Cements Limited, together with its subsidiaries, manufactures and markets cement and cement related products to individual homebuilders, masons and contractors, and architects and engineers in India. The company offers Portland pozzolana cement, ordinary Portland cement, and pozzolana composite cement, as well as temperature resistant concrete blocks, Blaine Portland cement, and micro materials. It sells its products through dealers, authorized retail stockiest, retailers, and authorized sales representatives.

Ambuja Cements Fundamentals Summary

How do Ambuja Cements's earnings and revenue compare to its market cap?
AMBUJACEM fundamental statistics
Market Cap₹754.94b
Earnings (TTM)₹31.78b
Revenue (TTM)₹283.15b

23.8x

P/E Ratio

2.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AMBUJACEM income statement (TTM)
Revenue₹283.15b
Cost of Revenue₹92.65b
Gross Profit₹190.50b
Expenses₹158.72b
Earnings₹31.78b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 26, 2021

Earnings per share (EPS)16.00
Gross Margin67.28%
Net Profit Margin11.22%
Debt/Equity Ratio0.1%

How did AMBUJACEM perform over the long term?

See historical performance and comparison

Dividends

4.7%

Current Dividend Yield

112%

Payout Ratio

Valuation

Is Ambuja Cements undervalued compared to its fair value and its price relative to the market?

21.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AMBUJACEM (₹380.35) is trading below our estimate of fair value (₹481.45)

Significantly Below Fair Value: AMBUJACEM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AMBUJACEM is poor value based on its PE Ratio (23.8x) compared to the Indian Basic Materials industry average (16.5x).

PE vs Market: AMBUJACEM is poor value based on its PE Ratio (23.8x) compared to the Indian market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: AMBUJACEM is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: AMBUJACEM is overvalued based on its PB Ratio (3.1x) compared to the IN Basic Materials industry average (1.6x).


Future Growth

How is Ambuja Cements forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMBUJACEM's forecast earnings growth (12.2% per year) is above the savings rate (6.7%).

Earnings vs Market: AMBUJACEM's earnings (12.2% per year) are forecast to grow slower than the Indian market (19.1% per year).

High Growth Earnings: AMBUJACEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: AMBUJACEM's revenue (9.2% per year) is forecast to grow slower than the Indian market (12.8% per year).

High Growth Revenue: AMBUJACEM's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMBUJACEM's Return on Equity is forecast to be low in 3 years time (13.1%).


Past Performance

How has Ambuja Cements performed over the past 5 years?

19.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMBUJACEM has high quality earnings.

Growing Profit Margin: AMBUJACEM's current net profit margins (11.2%) are higher than last year (8.3%).


Past Earnings Growth Analysis

Earnings Trend: AMBUJACEM's earnings have grown by 19% per year over the past 5 years.

Accelerating Growth: AMBUJACEM's earnings growth over the past year (59.9%) exceeds its 5-year average (19% per year).

Earnings vs Industry: AMBUJACEM earnings growth over the past year (59.9%) underperformed the Basic Materials industry 101.8%.


Return on Equity

High ROE: AMBUJACEM's Return on Equity (13.3%) is considered low.


Financial Health

How is Ambuja Cements's financial position?


Financial Position Analysis

Short Term Liabilities: AMBUJACEM's short term assets (₹148.5B) exceed its short term liabilities (₹95.8B).

Long Term Liabilities: AMBUJACEM's short term assets (₹148.5B) exceed its long term liabilities (₹13.8B).


Debt to Equity History and Analysis

Debt Level: AMBUJACEM's debt to equity ratio (0.1%) is considered satisfactory.

Reducing Debt: AMBUJACEM's debt to equity ratio has reduced from 0.2% to 0.1% over the past 5 years.

Debt Coverage: AMBUJACEM's debt is well covered by operating cash flow (10521.1%).

Interest Coverage: AMBUJACEM earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Ambuja Cements's current dividend yield, its reliability and sustainability?

4.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AMBUJACEM's dividend (4.73%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: AMBUJACEM's dividend (4.73%) is in the top 25% of dividend payers in the Indian market (1.42%)


Stability and Growth of Payments

Stable Dividend: AMBUJACEM's dividend payments have been volatile in the past 10 years.

Growing Dividend: AMBUJACEM's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (112.4%), AMBUJACEM's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AMBUJACEM's dividends in 3 years are forecast to be well covered by earnings (18.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.7yrs

Average management tenure


CEO

Neeraj Akhoury (53 yo)

1.67yrs

Tenure

₹71,949,051

Compensation

Mr. Neeraj Akhoury has been Director of ACC Limited since December 16, 2016 and its Non-Executive Non-Independent Director since February 21, 2020. He had been Chief Executive Officer and Managing Director...


CEO Compensation Analysis

Compensation vs Market: Neeraj's total compensation ($USD958.87K) is about average for companies of similar size in the Indian market ($USD1.14M).

Compensation vs Earnings: Insufficient data to compare Neeraj's compensation with company performance.


Leadership Team

Experienced Management: AMBUJACEM's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

Experienced Board: AMBUJACEM's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ambuja Cements Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Ambuja Cements Limited
  • Ticker: AMBUJACEM
  • Exchange: NSEI
  • Founded: 1981
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: ₹754.942b
  • Shares outstanding: 1.99b
  • Website: https://www.ambujacement.com

Number of Employees


Location

  • Ambuja Cements Limited
  • Elegant Business Park
  • MIDC Cross Road ‘B’
  • Mumbai
  • Maharashtra
  • 400059
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 16:11
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.